(1) Where there is an outstanding debt owed to the college and upon receipt of a written request inquiring as to the reason(s) for services or refund being withheld, the college shall provide a written explanation why the services or refund are being withheld. The college will also identify the amount of the outstanding debt, and further explain that until that debt is satisfied (or stayed by bankruptcy proceedings or discharged in bankruptcy), no such services and/or refund will be provided to the individual. The written explanation shall also inform the individual that he or she has a right to a hearing before a person designated by the vice president for administration if he or she believes that no debt is owed and specify that the request for the hearing must be made within ten days from the date the written explanation is received.

(2) Upon receipt of a timely request for a hearing, the person designated by the vice president shall have the records and files of the institution available for review and, at that time, shall hold a brief adjudicative proceeding concerning whether the individual owes or owed any outstanding debts to the institution. After the brief adjudicative proceeding, an order shall be entered by the vice president's designee indicating whether the institution is correct in withholding services and/or applying off set for the outstanding debt. If the outstanding debt is found to be owed by the individual involved, no further services shall be provided until the debt has been paid. The order and notice of discontinued service shall be sent to the individual within ten business days after the hearing.